Formulas for calculating French VAT - Cheat sheet

Calculating VAT (Value Added Tax) seems at first glance to be a simple process. However, it turns out to be full of subtleties that require a thorough understanding for proper application. These subtleties include the calculation of VAT “within” (from the amount All taxes included (Net) to the Gross amount), i.e. the reverse VAT calculation. Below are the details for each rate.

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I. The Excluding Tax Base (HT): Basis for calculating VAT

The amount excluding taxes (Gross) represents the basis on which VAT is applied. This is the price of the goods or services before any taxes are added. This base includes various elements such as taxes (except VAT), ancillary costs charged by the supplier, and subsidies directly linked to the selling price. It is important to note that some items are excluded from this base, such as early payment discounts and rebates granted at the time of sale.

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II. VAT calculation (general VAT formula)

To calculate VAT, the calculations are as follows:

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From Gross:

 - VAT amount: Gross* VAT rate

 - Amount including VAT (All Taxes included): Gross* (1+Rate)

From the Net:

 - VAT amount: Net — Net/(1+rate)

 - Amount excluding VAT: Net * (1+Rate)

‍From VAT:

 - Amount excluding VAT: VAT/Rate

 - Amount including VAT: VAT/Rate + VAT

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III. Calculating 20% VAT

Calculating 20% VAT involves:

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From Gross:

 - VAT amount: Gross* 0.2

 - Amount including VAT (All Taxes included): Gross* 1.2

From the Net:

 - VAT amount: Net — Net/1.2

 - Amount excluding VAT: Net /1.2

From VAT:

 - Amount excluding VAT: VAT/0.2

 - Amount including VAT: VAT/0.2 + VAT

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IV. Calculating 10% VAT

To calculate VAT at a rate of 10%, the calculations are as follows:

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From Gross:

 - VAT amount: Gross * 0.1

 - Amount including VAT (All taxes included): Gross * 1.1

From the Net:

 - VAT amount: Net — Net /1.1

 - Amount excluding VAT: Net/1.1

From VAT:

 - Amount excluding VAT: VAT/0.1

 - Amount including VAT: VAT/0.1 + VAT

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V. Calculating 5.5% VAT

To calculate VAT at a rate of 5.5%, the calculations are as follows:

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From Gross:

 - VAT amount: Gross* 0.055

 - Amount including VAT (All Taxes included): Gross * 1.055

From the Net:

 - VAT amount: TTC — TTC/1.055

 - Amount excluding VAT: TTC/1.055

From VAT:

 - Amount excluding VAT: VAT/0.055

 - Amount including VAT: VAT/0.055 + VAT

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VI. The calculation of VAT at 8.5%

To calculate VAT at a rate of 8.5%, the calculations are as follows:

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From Gross:

 - VAT amount: Gross * 0.085

 - Amount including VAT (All taxes included): Gross * 1.085

From the Net:

 - VAT amount: Net — Net/1.085

 - Amount excluding VAT: Net/1.085

From VAT:

 - Amount excluding VAT: VAT/0.085

 - Amount including VAT: VAT/0.085 + VAT

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VII. The calculation of VAT at 2.1%

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The calculation of VAT at 2.1% implies:

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From Gross:

 - VAT amount: Gross * 0.021

 - Amount including VAT (All taxes included): Gross * 1.021

From the Net:

 - VAT amount: Net — TTC/1.021

 - Amount excluding VAT: Net/1.021

From VAT:

 - Amount excluding VAT: VAT/0.021

 - Amount including VAT: VAT/0.021 + VAT

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